State Street Corporation · NYSE:STT
State Street — Earnings Presentation (October 2019)
20 slides from State Street's earnings presentation, October 2019
Slide 1: State Street Brexometer: Gauging Investor Sentiment on the Brexit Impact
State Street Brexometer: Gauging Investor Sentiment on the Brexit Impact State Street Institutional Survey October 2019 Limited Access
Slide 2: Methodology
Methodology • State Street commissioned PollRight* to conduct a survey of professional investors on their sentiment apropos Brexit. • Respondents comprised institutional and alternative investors such as hedge funds, real estate and private equity**. In total, 101 individuals participated. • The res
Slide 3: Summary of Findings
Summary of Findings • With Brexit looming at the end of the month, the State Street Brexometer yielded a number of record- breaking high and low scores as investment professionals from both the institutional and alternative side face up to the reality of the UK exiting the European Union. • When pre
Slide 4: Summary of Findings
Summary of Findings • Investors are currently adopting a defensive position on UK assets, with 57% stating that their holding of UK assets (equities, bonds and alternatives) will stay the same over the coming six months. • Only 14% expect to increase their holding of UK assets – with no respondents
Slide 5: Summary of Findings
Summary of Findings • As a result of this fall in optimism, the number of investors adopting a negative outlook for the next three to five years rose to a record high of 41.4%, considerably beating the previous reading of 30.4% recorded in Q4 2018. • Despite the negative outlook, the proportion of i
Slide 6: Q1. Impact of Brexit scenarios on global markets
Q1. What immediate impact do you think each of the possible Brexit scenarios will have on global markets? 100% 4% 8% 90% 18% 10% 80% 24% 20% 70% 60% 53% 25% 50% 35% 40% 30% 35% 20% 13% 31% 10% 14% 8% 0% 2% A deal for the UK to leave the EU is The UK leaves the EU on 31st October There is an extensio
Slide 7: Q1. Impact on global markets (positive impact respondents)
Q1. What immediate impact do you think each of the possible Brexit scenarios will have on global markets? (All those who anticipate a positive impact) 100% 90% 80% 71% 70% 60% 50% 40% 32% 30% 20% 14% 10% 0% A deal for the UK to leave the EU is The UK leaves the EU on 31st October There is an extensi
Slide 8: Q2. Value of UK equities in scenarios
Q2. What do you think will happen to the value of UK equities over the next three months in the following scenarios: 100% 3% 6% 90% 14% 16.2% 80% 22% 70% 20.2% 60% 46% 34% 50% 23.2% 40% 30% 23% 20% 32% 37.4% 10% 13% 0% 4% 6% A deal for the UK to leave the EU is The UK leaves the EU on 31st October T
Slide 9: Q2. UK equities (those anticipating increase)
Q2. What do you think will happen to the value of UK equities over the next three months in the following scenarios: (All those who anticipate an increase on value) 100% 90% 80% 70% 60% 60% 50% 40% 30% 28% 19.2% 20% 10% 0% A deal for the UK to leave the EU is The UK leaves the EU on 31st October The
Slide 10: Q3. Value of Sterling in scenarios
Q3. What do you think will happen to the value of Sterling over the next three months in the following scenarios: 100% 3% 4% 90% 21% 11% 27% 80% 17% 70% 60% 54% 29% 36% 50% 40% 30% 20% 11% 39% 29% 10% 12% 0% 2% 5% A deal for the UK to leave the EU is The UK leaves the EU on 31st October There is an
Slide 11: Q3. Sterling (those anticipating increase)
Q3. What do you think will happen to the value of Sterling over the next three months in the following scenarios: (All those who anticipate an increase on value) 100% 90% 80% 75% 70% 60% 50% 40% 30% 30% 20% 15% 10% 0% A deal for the UK to leave the EU is The UK leaves the EU on 31st October There is
Slide 12: Q4. Intended change in holdings of UK assets
Q4. How does your company intend to change its holdings of UK assets (equites, bonds or alternatives) in the next six months? 0% 17.2% 14% 25.0% 6.1% 20.0% [VALU E] 15.0% 12.1% 10.0% 6.1% 5.0% 0.0% Increase significantly All increase All decrease Increase slightly Stay the same as today 56.6% Decrea
Slide 13: Q4. Change in UK asset holdings, Q4 2019 vs Q1 2019
Q4. How does your company intend to change its holdings of UK assets (equites, bonds or alternatives) in the next six months? 60% 56.6% 54% 50% 40% 30% 22% 19% 20% 17.2% 14.1% 14% 14.1% 12% 12.1% 10% 10% 6.1% 5% 6.1% 5% 0% 0% Increase Increase Stay the same Decrease Decrease Don't know All increase
Slide 14: Q5. Medium-term global economic growth expectations
Q5. What are your expectations of medium-term (three to five years) prospects for global economic growth? 3% 28.3% 41.4% Positive Neutral Negative 27.3% Don't know 14 Limited Access − State Street Brexometer Survey
Slide 15: Q5. Growth expectations, Q4 2019 vs Q1 2019
Q5. What are your expectations of medium-term (three to five years) prospects for global economic growth? 45% 41.4% 40% 37% 35% 32% 30% 30% 28.3% 27.3% 25% 20% 15% 10% 5% 3% 1% 0% Positive Neutral Negative Don't know Q4 2019 Q1 2019 15 Limited Access − State Street Brexometer Survey
Slide 16: Q6. Impact of Brexit on business operating model
Q6. What level of impact do you anticipate Brexit having on your business operating model? 3% 3% 8.1% 25.3% 18.2% Very significant impact Significant impact 18.2% Moderate impact Slight impact 24.2% Very slight impact No impact Don’t know 16 Limited Access − State Street Brexometer Survey
Slide 17: Q6. Business impact, Q4 2019 vs Q1 2019
Q6. What level of impact do you anticipate Brexit having on your business operating model? 90% 80% 79.8% 71.7% 70% 60% 50% 40% 30% 25.3% 22.2% 24.2%22.2% 22.2% 20% 18.2% 18.2% 16.2% 15.2% 13.1% 11.1% 10% 7.1% 8.1% 3% 3% 4% 0% Very Significant Moderate Slight impact Very slight No impact Don’t know A
Slide 18: Q7. Asset owners' change in level of investment risk
Q7. Over the next three to five years, how will asset owners change their level of investment risk? 6% 1% 22% 20% 50.0% 47% 40.0% 30.0% 23% 20.0% 10.0% 24% 0.0% All increase All decrease 27% Significantly increase levels of risk Slightly increase levels of risk No change Slightly decrease levels of
Slide 19: Q7. Investment risk, Q4 2019 vs Q1 2019
Q7. Over the next three to five years, how will asset owners change their level of investment risk? 50% 47% 45% 40% 40% 35% 30% 29% 25% 25% 27% 26% 25% 22% 24% 23% 20% 20% 15% 14% 10% 6% 6% 5% 4% 1% 0% Significantly Slightly No change Slightly Significantly Don't know All increase All decrease incre
Slide 20: Disclaimer
Disclaimer Important Information: All results come from the PollRight survey. PollRight and State Street are not affiliated. Investing involves risk including the risk of loss of principal. The information provided does not constitute investment advice and it should not be relied on as such. It does